bitcoinWhile trying to take advantage of the positive CPI data from the US front, it failed to break a critical resistance level. BTC, which managed to accumulate a certain strength while overcoming the resistance at the $31,000 level, soon returned to where it started.
As Glassnode co-founder Yann Allemann explained, cryptocurrency The currency’s rapid rise and subsequent fall was driven by carefully placed buy and sell limits to limit volatility. Bitcoin’s quiet response to CPI data may mean that it may have already priced in economic indicators.
“Bollinger Bands”, used by traders to identify periods of high and low market volatility, fell to its lowest level since January just before the CPI data were released. This tightening bitcoin priceThis led to a sudden upward movement. However, this increase was not as rapid as he had expected, as the buy and sell limits established in anticipation of volatility successfully mitigated expected price volatility.
Alleman stated that despite the developments, interest in BTC remained low and there was little sign of taking a position before the CPI data were released. This is a trend that is in line with the expectation of new capital inflows in the market.
As a matter of fact, macroeconomic developments continue to change in favor of risky assets such as the stock market and BTC. With annual CPI inflation reaching 3% for June, slightly below the market forecast of 3.1%, and core CPI inflation at 4.8%, the US Federal Reserve may move towards a more dovish monetary policy stance.
US CPI Data Announced: What Awaits Bitcoin and Ethereum Price?
Combined with the US dollar index (DXY) dropping to a two-month low of 101.16, this shift could ease some of the pressure on Bitcoin and give it the breathing space it needs to climb higher.
You can follow the current price action here.